California Businessman Is Sentenced to 30 Years in $1 Billion Ponzi Scheme

The owner of a California solar company adapted his $1 billion Ponzi program and used the money to buy luxury homes, 100+ cars, minor league baseball teams, federal attorneys, and more. He was sentenced to 30 years in prison this week. On the phone.

Jeff Karpov, 50, pleaded guilty after he and his wife, Polet Karpov, 47, planned to sell a mobile solar generator to investors in January 2020. I received the biggest decision on Tuesday. American law firm in Eastern California. Mr Karpoff will be sentenced next week.

According to a 2020 criminal complaint filed by prosecutors and the Securities and Exchange Commission, the company claims to have built 17,000 portable power plants between 2011 and 2018. DC Solar, based in Benicia, California, is currently out of service.

A US law firm said in a statement Tuesday that it wooed investors by falsifying financial statements and lying about potential revenue from leasing the machine, also known as MSG. Prosecutors said the money received from investors did not come from rental income but from payments to new investors.

“Because DC Solar lost so much money on this fraudulent model, Karpoff and other conspirators stopped manufacturing MSG altogether and sold thousands of MSG that didn’t even exist,” prosecutors said. Which says.

According to a complaint from the SEC, 17 investors lost money under the program. Warren Buffett’s Berkshire Hathaway is one investor, the company said in its 2019 quarterly report.

Last year, prosecutors said about $120 million in assets would be reclaimed from the program and paid out to investors.

About $8 million in auction proceeds came from 148 cars seized from Karpoff, including a 1978 Pontiac Firebird that prosecutors say was once owned by actor Burt Reynolds. That is something. They also bought jewelry and sponsored NASCAR vehicles, prosecutors said.

“Karpov’s gruesome plans have fueled his voracious desire for luxury and superiority,” Sean Lagan, a special agent in the FBI’s Sacramento office, said in a statement Tuesday.

Philip A. Talbert, assistant US attorney general for the Eastern District of California, said Kapov’s criminal fraud program was the largest in the district’s history.

“He claims to be an innovator in alternative energy, but in reality he is stealing money from investors,” Talbert said in a statement Tuesday.

Prosecutors said Mr. Karpoff was guilty of telegraph fraud and money laundering conspiracy. His wife faces 15 years in prison next week for crimes against the United States and conspiracy to launder money.

Karpoff’s attorney Malcolm Chaika said in a telephone interview on Wednesday that Karpoff had apologized to investors in a written statement. “He is angry because he has harmed investors and many of his family and colleagues,” Chaika said.

Karpoff’s attorney William J. Portanova added in a telephone interview on Wednesday that Tuesday’s ruling was “certainly a cool court ruling” and that the Karpoff family “is suffering from this self-imposed crisis.” Ricefield.

According to prosecutors, five other people have pleaded guilty to Ponzi’s plot and are awaiting a decision. The 2019 SEC statement covers accountants and contractors falsifying documents presented to investors

The SEC has pursued the Ponzi program more aggressively since Bernard L. Madow was accused of introducing the $50 billion Ponzi program in 2008.

In 2019, the agency accused Texas radio host William Neil Gallagher of implementing a Ponzi scheme that scammed listeners on his Christian radio show for at least $23 million. He was sentenced to three life sentences in Texas this month.

In April, actor Zack Avery, known as Zack Avery, was arrested on charges of physical fraud and charged with defrauding investors of at least $227 million using a Ponzi scheme.

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